Sexual Harassment Claims and Arbitration Agreements: Your Rights Under the EFAA

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If you’ve experienced sexual harassment at work and signed an arbitration agreement, you may be wondering whether you’ve waived your right to take your case to court. The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) changed this landscape significantly. This federal law now gives employees who have experienced workplace sexual harassment the power to choose whether to pursue their claims through arbitration or in court, even if they previously signed arbitration agreements. Understanding how this law protects your rights is crucial for ensuring you can seek justice for sexual harassment in the workplace.

Employer Use of Arbitration Agreements

Employers are increasingly using arbitration agreements. These arbitration agreements can be found in various types of employment contracts, including offer letters, employment agreements, and non-disclosure agreements.

Aspects of Arbitration Favor Employers

What is arbitration? Arbitration is a private dispute resolution process outside of the court system. The parties hire a neutral third party, known as an arbitrator, to decide the dispute. Certain features of arbitration tend to favor employers. First, there is no jury to sympathize with the employee. Second, the process is private, rather than public, minimizing the possibility of negative publicity for the employer. Third, the process can be quicker and more cost-effective, which can limit the employer’s legal costs. Finally, the decision of the arbitrator is final, and the employee cannot appeal if they lose. For these reasons, employers are increasingly including arbitration clauses in employment agreements.

Sexual Harassment and Arbitration Agreements

Employers are limited in enforcing arbitration agreements by the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“EFAA”). This law allows employees who have signed arbitration agreements to choose whether to arbitrate their claims or go to court for claims that arise after March 2022. The EFAA has limited the ability of employers to enforce arbitration agreements in sexual harassment and sexual assault cases. Keep in mind two things: (1) there are cases currently winding their way through the state and federal court systems that will impact upon and define the full scope of this law and (2) plaintiffs in Massachusetts must still file first with an administrative agency, either the Massachusetts Commission Against Discrimination, or the EEOC.

The attorneys at Maura Greene Law Group represent employees in cases involving sexual harassment. If you have been sexually harassed at work or if you’ve signed an arbitration agreement that you are concerned waives certain rights, we can help. Contact us here, call us at 617-936-1580, or email [email protected].

 

The Not-So-Fine Print:
Every case has its unique facts. Before you take any action, you should contact an employment lawyer and get advice on your own situation. We can’t provide legal advice here, and this isn’t intended as legal advice. It is best, if possible, to establish a relationship with an attorney before a workplace issue turns into a crisis.